Review of Rock Lobster Sustainability Measures for 1 April 2016

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1 NATIONAL ROCK LOBSTER MANAGEMENT GROUP Review of Rock Lobster Sustainability Measures for 1 April 2016 Final Advice Paper Prepared by the National Rock Lobster Management Group MPI Discussion Paper No: 2016/12 ISBN No: (online) ISSN No: (online) 29 February 2016

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4 Contents Page 1 Executive summary 1 2 NRLMG recommendations 3 3 Purpose 6 4 Background information 7 5 Consultation 10 6 Legal considerations 11 7 Review of the CRA 4 rock lobster fishery 14 8 Review of the CRA 5 rock lobster fishery 21 9 Review of the CRA 8 rock lobster fishery Review of the CRA 9 rock lobster fishery 37 Appendix 1: Other matters 43 Appendix 2: Current CRA 4 management procedure specifications 45 Appendix 3: New CRA 5 management procedure specifications 46 Appendix 4: Current CRA 5 management procedure specifications 47 Appendix 5: Current CRA 7 management procedure specifications 48 Appendix 6: New CRA 8 management procedure specifications 50 Appendix 7: Current CRA 8 management procedure specifications 51 Appendix 8: Current CRA 9 management procedure specifications 52 Appendix 9: Submissions received on the consultation document 53

5 1 Executive summary Figure 1.1: Map of rock lobster Quota Management Areas showing stocks under review in blue. You are being asked to make decisions on sustainability measures for four rock lobster stocks for the fishing year beginning 1 April The total allowable catch (TAC), allowances and total allowable commercial catch (TACC) proposals presented in this paper for your decision are guided by new stock assessment information and/or the results from the operation of management procedures ( decision rules ). Your decisions relate to: Not following the results of the current CRA 4 (Wellington/Hawkes Bay) management procedure and making a greater reduction to the TAC and TACC than proposed by the procedure, with no changes to the non-commercial allowances; Replacing the current CRA 5 (Canterbury/Marlborough) management procedure with a new procedure, increasing the TAC and recreational allowance, and making no change to the customary allowance, the allowance for other sources of fishing-related mortality and the TACC; Replacing the current CRA 8 (Southern) management procedure with a new procedure and making no change to the TAC, allowances and TACC; Not following the results of the current CRA 9 (Westland/Taranaki) management procedure and making no change to the TAC, allowances and TACC. Table 1.1 provides a summary of the final proposals for each rock lobster stock under review. These proposals were developed by the National Rock Lobster Management Group (NRLMG) after consideration of best available information and tangata whenua and stakeholder views. NRLMG Review of Rock Lobster Sustainability Measures for 1 April

6 Table 1.1: TAC, allowance and TACC final proposals for CRA 4, CRA 5, CRA 8 & CRA 9. Stock Option TAC Customary Recreational Other mortality TACC CRA 4 CRA4_01: Use the current CRA 4 management procedure and decrease the TAC by decreasing the TACC by 21 tonnes (4.5 %) CRA4_02: Decrease the CRA 4 TAC by decreasing the TACC by 47 tonnes (10%) CRA4_03: Decrease the CRA 4 TAC by decreasing the TACC by 70 tonnes (15%) (NRLMG preferred option) 641 t 35 t 85 t 75 t 446 t 615 t 35 t 85 t 75 t 420 t 592 t 35 t 85 t 75 t 397 t CRA4_04: Retain the current CRA 4 TAC, allowances and TACC 662 t 35 t 85 t 75 t 467 t CRA 5 CRA 8 CRA 9 CRA5_01: Use the new CRA 5 management procedure and set the following TAC and allowances, while retaining the TACC (NRLMG preferred option) CRA5_02: Use the current CRA 5 management procedure and retain the TAC, allowances and TACC CRA8_01: Use the new CRA 8 management procedure and retain the TAC, allowances and TACC (NRLMG preferred option) CRA8_02: Use the current CRA 8 management procedure and retain the TAC, allowances and TACC CRA9_01: Use the current CRA 9 management procedure and decrease the TAC and TACC CRA9_02: Retain the current CRA 9 TAC, allowances and TACC (NRLMG preferred option) 514 t 40 t 87 t 37 t 350 t 467 t 40 t 40 t 37 t 350 t 1053 t 30 t 33 t 28 t 962 t 1053 t 30 t 33 t 28 t 962 t 101 t 20 t 30 t 5 t 46 t t 20 t 30 t 5 t 60.8 t 2 Review of Rock Lobster Sustainability Measures for 1 April 2016 NRLMG

7 A central consideration when choosing to use a management procedure to guide TAC setting in a fishery, is whether the procedure enables you to set a TAC that complies with section 13 of the Fisheries Act 1996 (the Act). The management procedures discussed in this paper are designed to move stock biomass to, or maintain the biomass of each stock at, a size at or above a level that can produce the maximum sustainable yield (i.e. Bmsy) or at a level that is not inconsistent with this objective. Rock lobster management procedures, in general, are designed to move or maintain stock abundance well above Bmsy and an agreed reference level using a comprehensive approach that recognises a range of customary Maori, recreational and commercial benefits. The NRLMG supports the use of management procedures in all of New Zealand s rock lobster fisheries - unless there are compelling reasons in a particular case not to follow the procedure (as in CRA 4 and CRA 9 this year). Using management procedures to guide TAC setting allows for much more rapid management responses than the conventional approach of periodic stock assessment followed by decision making. Having infrequent stock assessments can cause delays to the implementation of management actions required for stock sustainability. 2 NRLMG recommendations CRA 4 (Wellington/Hawkes Bay) The NRLMG recommends that you agree to Option CRA4_03, which is to decrease the TAC/TACC by 70 tonnes and retain the non-commercial allowances. Option CRA4_03 was not formally consulted on; however, it is more conservative than Option CRA4_01 (21 tonne TAC/TACC reduction) and Option CRA4_02 (47 tonne TAC/TACC reduction) that were consulted on. The 2011 CRA 4 stock assessment results suggested that 2011 stock biomass was well above agreed reference levels. However, CPUE (offset year) has declined by 36% since 2012 and it is uncertain whether 2015 stock biomass is above or below agreed reference levels. Option CRA4_03 involves a decision not to follow the results of CRA 4 management procedure that has been in use in the fishery since April 2012, but to make a greater reduction than proposed by the procedure. The NRLMG considers that choosing not to follow the procedure is an appropriate course of action because the Group s preferred option is more conservative and that a new stock assessment will be performed later in 2016 and new management procedures will be evaluated to inform CRA 4 catch limit decisions for April Late in January 2016, the CRA 4 Rock Lobster Association (CRAMAC 4) Executive Committee undertook a review of CRA 4 landings for the current fishing year, which found a 49 tonne shortfall in landings compared with landings from the same period for the previous season. CRAMAC 4 is concerned that the CRA 4 fishery might be sliding into a period of rapid decline as witnessed in the mid-2000s and believe that corrective action is promptly needed. A 70 tonne TACC reduction under Option CRA4_03 is considered meaningful, in comparison to the other reduction options, because it has the potential to leave some fish in the water for the next season and provide greater certainty that the stock is maintained above the agreed reference levels. NRLMG Review of Rock Lobster Sustainability Measures for 1 April

8 CRAMAC 4 conducted a ballot of all CRA 4 quota share owners during the consultation period. The ballot response was overwhelmingly in favour of a 70 tonne reduction: more than 88% of the CRA 4 quota shares owned supported the 70 tonne reduction, with only 2.2% of quota shares owned opposing it. In accordance with the rules of CRAMAC 4, if greater than 75% of quota shares owned are in support of a TAC/TACC adjustment option, it can then be recommended as the preferred option for your consideration. The NRLMG considers that the risk of choosing an option that was not consulted on, in this case, to be low. There is a high level of industry support for the 70 tonne reduction. It is also unlikely that non-commercial fishers will oppose the greater reduction because it should leave more fish in the water and provide a greater opportunity for the CRA 4 stock to increase. No change is proposed to the non-commercial allowances for CRA 4 because it is considered that the allowances adequately allow for customary and recreational fishing interests at this time. CRA 5 (Canterbury/Marlborough) The NRLMG recommends that you agree to Option CRA5_01, which is to use the new CRA 5 management procedure and increase the TAC and recreational allowance, and retain the customary allowance, allowance for other sources of fishing-related mortality and the TACC. Based on the 2015 stock assessment results, there are no sustainability concerns for the CRA 5 fishery: stock biomass in 2015 was well above agreed reference levels. Ongoing application of the new CRA 5 management procedure is expected to maintain the CRA 5 stock above the agreed reference levels with greater than 99% probability. Best available information suggests the current 40 tonne CRA 5 recreational allowance is being exceeded due to an increase in recreational and amateur charter vessel take. The assumed 2014 recreational catch estimate for the stock assessment model was 82.8 tonnes. The NRLMG considers the proposed new recreational allowance of 87 tonnes will adequately allow for recreational interests at this time. It is also considered crucial that frequent monitoring of recreational rock lobster harvest is undertaken through Ministry for Primary Industries (MPI)- approved survey methodologies in CRA 5 so that effective management of the fishery can be achieved. During consultation, it was proposed under Option CRA5_01 that the allowance for other sources of fishing-related mortality should be decreased from 37 to 30 tonnes. A 30 tonne allowance was proposed based on advice from MPI that illegal take in the fishery was estimated to be at this level. Under the Act, you are required to allow for all other mortality to a stock caused by fishing when setting any TACC. The NRLMG proposes that the CRA 5 other mortality allowance is retained until an estimate of all other mortality (i.e. handling related mortality), in addition to illegal take, is calculated. No change is proposed to the customary allowance for CRA 5 because it is considered that the allowance adequately allows for customary fishing interests at this time. In terms of the TACC, the NRLMG notes that the proposal to retain the CRA 5 TACC is based on the CRA 5 industry s preference to ensure the commercial goals of catch stability, security and enhanced economic performance are achieved. 4 Review of Rock Lobster Sustainability Measures for 1 April 2016 NRLMG

9 The sustainability measures discussed here for CRA 5 were developed by the NRLMG with a view that supplementary recreational regulatory measures would be consulted upon and implemented later in 2016 to support the ongoing sustainable utilisation of this fishery. These additional measures include the introduction of telson clipping and an accumulation limit of 18 rock lobsters (3 daily bag limits) for recreational fishers. The NRLMG proposes that a separate consultation document will be released on these measures in April/May CRA 8 (Southern) The NRLMG recommends that you agree to Option CRA8_01, which is to use the new CRA 8 management procedure and retain the TAC, allowances and TACC. Based on the 2015 stock assessment results there are no sustainability concerns for the CRA 8 fishery: stock biomass in 2015 was well above agreed reference levels. The new CRA 8 management procedure is expected to maintain the CRA 8 stock above the agreed reference levels with greater than 99% probability. During consultation, it was proposed under Option CRA8_01 that the allowance for other sources of fishing-related mortality should be decreased from 28 to 5 tonnes. A 5 tonne allowance was proposed based on advice from MPI that illegal take in the fishery was estimated at 3 tonnes. As discussed under CRA 5 above, you are required to allow for all other mortality to a stock caused by fishing when setting any TACC. The NRLMG proposes that the CRA 8 other mortality allowance is retained at 28 tonnes until an estimate of all other mortality is calculated. No change is proposed to the customary or recreational allowances for CRA 8 because it is considered that the allowances adequately allow for these interests at this time. The proposal to retain the CRA 8 TACC is based on the CRA 8 industry s preference to ensure that high levels of stock abundance continue so that the commercial goals of catch stability and enhanced economic performance are achieved. The stock assessments for the CRA 7 (Otago) and CRA 8 rock lobster fisheries are carried out as one assessment because of the periodic movement of CRA 7 rock lobsters into CRA 8. This provided an opportunity re-evaluate the current CRA 7 management procedure s performance. You agreed to use the current CRA 7 procedure until the fishing year. However, because it has been re-evaluated with a new operating model, the NRLMG proposes that you agree to continue using the current CRA 7 procedure for five years from the to April fishing years. CRA 9 (Westland/Taranaki) The NRLMG recommends that you agree to Option CRA9_02, which is to retain the current CRA 9 TAC, allowances and TACC. Option CRA9_02 involves a decision not to follow the CRA 9 management procedure that has been in use in the fishery since April In 2015 you agreed to retain the current TAC because of concerns expressed by the NRLMG that the management procedure may not be appropriate in the CRA 9 fishery given the small amount of commercial fisheries information available to support its operation. NRLMG Review of Rock Lobster Sustainability Measures for 1 April

10 An audit of CRA 9 CPUE in 2015 concluded that the recent low number of vessels and poor commercial reporting problems had contributed to the instability of CPUE in recent years. The audit also concluded that the decline in CPUE in the last two years was real and that the declining CPUE signal in the last two years was reasonably robust. In hindsight, the NRLMG considers that moving to a management procedure approach for the CRA 9 fishery may not have been the right decision given the shortcomings in the available information to support its operation. Retaining the current TAC, allowances and TACC for CRA 9 in the short-term is unlikely to pose a sustainability risk to the stock. In 2013, modelling results suggested that 2012 stock biomass was very likely to be above the statutory reference level, Bmsy, and despite CPUE (offset year) declining by 40% since 2013, CPUE is still well above the historical average. Also, commercial landings are constrained by the current 60.8 tonne TACC and the size frequency distribution of commercial catches does not suggest a rock lobster stock under high fishing pressure. The NRLMG supports the exploration of alternative management approaches for the CRA 9 fishery during 2016 to inform future catch limit setting reviews. 3 Purpose 3.1 NEED FOR ACTION Every year the NRLMG considers the results from stock assessments and the operation of management procedures. These determine whether catch limit changes are required for the upcoming April fishing year to ensure the sustainable use of the rock lobster resource. A management procedure is a kind of decision rule that is used to guide the setting of catch limits in rock lobster fisheries. Management procedures are informed by annual changes in commercial catch rates ( catch-per-unit-effort or CPUE ). Commercial CPUE is considered a reliable indicator of abundance and is supported by scientific modelling to provide an overall assessment of stock status. Management procedures are used in all rock lobster fisheries except for CRA 6 and CRA 10. In general, each procedure is designed to move or maintain stock abundance well above agreed reference levels and, in turn this provides for good utilisation benefits for all sectors. In 2015 a new management procedure was evaluated for the CRA 5 fishery. You agreed to use the current CRA 5 management procedure to guide TAC setting in the CRA 5 fishery until the fishing year. However, the NRLMG agreed to carry out a new stock assessment and management procedure evaluations for the CRA 5 fishery one year earlier than scheduled to ensure that your statutory obligations were being met. The early review was based on feedback from interested stakeholders, declines in commercial CPUE in some parts of the fishery, and new monitoring information that suggested recreational catches had increased and that the recreational allowance was being exceeded. A new management procedure was also evaluated for the CRA 8 fishery in In 2013 you agreed to use the current CRA 8 management procedure to guide TAC setting in the CRA 8 fishery until the fishing year. The stock assessment and management procedure evaluations for the CRA 8 fishery were brought forward by two years based on a request from 6 Review of Rock Lobster Sustainability Measures for 1 April 2016 NRLMG

11 the CRA 8 rock lobster industry to explore greater utilisation opportunities (if considered sustainable). The stock assessments for the CRA 7 and CRA 8 rock lobster fisheries are carried out as one assessment because of the periodic movement of CRA 7 rock lobsters into CRA 8. This provided an opportunity to update the operating model for the current CRA 7 procedure and re-evaluate its performance. You agreed to use the current CRA 7 procedure until the fishing year. However, because it has been re-evaluated with a new model, the NRLMG proposes that you agree to continue using the current CRA 7 procedure for five years from the to April fishing years. For further information on the specifications of the current CRA 7 procedure refer to Appendix 4. Based on the use of the proposed new and current management procedures, changes to the status quo are proposed for the CRA 4, CRA 5, CRA 8 and CRA 9 rock lobster fisheries. Operation of the CRA 1, CRA 2, CRA 3 and CRA 7 management procedures suggested that no change was needed to the management settings for these fisheries from April MANAGEMENT APPROACH The NRLMG is the primary advisor to you on catch limit, regulatory and other management actions that apply specifically to rock lobster fisheries. The NRLMG is a national-level, multistakeholder group comprising representatives of customary, recreational and commercial fishing sectors and MPI. The NRLMG s management goal is for all rock lobster fisheries: to be managed and maintained at or above the assessed and agreed reference levels, using a comprehensive approach that recognises a range of customary Maori, amateur, commercial and environmental concerns and benefits 4 Background information This section provides relevant background information on the management procedure approach, stock indicators, and the MPI Harvest Strategy Standard. 4.1 MANAGEMENT PROCEDURE APPROACH History of management procedure use in New Zealand Management procedures are currently in place for most of New Zealand s rock lobster fisheries. Each stock s management procedure has been used by Ministers to guide statutory TAC setting in rock lobster fisheries for varying periods. The oldest example of management procedures is in CRA 7 and CRA 8, where they have been used to guide TAC setting since 1996, first to rebuild the stocks and then to maintain them above reference levels with high probability. Management procedures are generally reviewed every five years unless an earlier review is requested and approved by the NRLMG. The review aims to ensure that TAC setting remains 1 The current CRA 1, CRA 2, CRA 3 and CRA 7 management procedures are not discussed further in this document because there is no proposal to change the management procedure approach, or change the TAC, allowances or TACC for the fishing year. NRLMG Review of Rock Lobster Sustainability Measures for 1 April

12 compliant with the statutory structure set out in the Act. It involves the development of a new stock assessment model and new management procedure evaluations. Table 4.1 provides an outline of the use of current management procedures and when they are scheduled for review. New CRA 5, CRA 7 and CRA 8 management procedures have been evaluated this year. Table 4.1: History of current management procedure use and their review schedule First year of the current management Year of scheduled review CRA 1 CRA 2 CRA 3 CRA 4 CRA 5 CRA 7 CRA 8 CRA Management procedure benefits The traditional approach used to set catch limits in many of New Zealand s fisheries is to undertake a stock assessment and then to provide recommendations on the TAC, allowances and the TACC. This approach has some disadvantages: stock assessment capacity is limited and under this approach for rock lobster only one or two assessments could be carried out each year. Delays in updating a stock assessment can cause management action to be delayed and catch limits to be set inappropriately for a fishery. A management procedure has a number of advantages over the traditional stock assessment approach. These include: a) The establishment of a management regime that can respond to changes in stock abundance in the fishery on an annual basis; b) An explicit definition of management goals (e.g. maximising yield, maximising stability, minimising risk); c) Greater certainty of achieving management goals; d) The involvement of fishery stakeholders in the choice of a management procedure; e) The ability to address uncertainty in all facets of the assessment and management process; f) The opportunity to free up resources for other research: management procedures reduce the frequency that stock assessments are required Evaluation of management procedures Management procedures are evaluated with a modified stock assessment model, known as the operating model. Data used in the stock assessment model include: customary, recreational, commercial and illegal catches, length frequencies of the catch from observer and industry logbook data, tag-recapture data (i.e. growth information) and larval settlement levels. The most important inputs to the assessment are commercial CPUE indices, which are considered to be proportional to abundance. Peer-review of stock assessment models and management procedures occurs at the Rock Lobster Fisheries Assessment Working Group and at the November mid-year Fisheries Assessment Plenary. Each management procedure is also extensively simulation-tested, which includes testing for robustness to uncertainties in model assumptions (e.g. variable levels of recruitment and non-commercial catches) and modelling choices. 8 Review of Rock Lobster Sustainability Measures for 1 April 2016 NRLMG

13 4.1.4 Main data input Standardised commercial CPUE from October to September each year is used as an input to a management procedure to determine the TAC or TACC for the fishing year that begins in the following April. This CPUE series is called offset year CPUE. Use of offset year CPUE ensures that the most up-to-date CPUE information is used in management procedure operations and decision-making. CPUE is used as the main input because it is considered to be a reliable indicator of relative stock size in rock lobster fisheries. CPUE has been successfully used in several management procedures to rebuild stocks from low to high abundance levels. 4.2 DEFINITION OF STOCK INDICATORS Four stock indicators are relevant to evaluation of the proposals presented in this paper 2 : a) The statutory reference level, Bmsy, the stock size that can produce the maximum sustainable yield. Section 13 of the Act requires you to set a TAC that moves the stock to, or maintains the stock at, a size at or above a level that can produce the maximum sustainable yield or at a level that is not inconsistent with this objective. b) The conceptual proxy, Bref 3, a reference biomass level. The use of Bref is a way of assessing a stock that is not inconsistent with the objective of maintaining a stock at or above, or moving the stock towards, a level that can maintain the maximum sustainable yield. This not inconsistent approach is set out in section 13(2A) of the Act where you consider that current biomass or Bmsy cannot be estimated reliably using best available information. Bref is generally a stock size at or above the stock size associated with a period in the fishery that showed good productivity and was demonstrably safe. c) The minimum stock size, Bmin, which is the lowest stock size observed in the history of the fishery. d) Spawning stock biomass, SSB, which is the weight of all mature females in the autumnwinter. Two new indicators have also been calculated in the last two years: the biomass of all fish, Btot, and the numbers of all fish, Ntot. There are some differences in the indicators that are reported for each stock in this paper because the Rock Lobster Fisheries Assessment Working Group has continually improved the way indicators are calculated over time. Table 4.2 provides a summary of the key indicators that are available for each stock discussed in this paper. 2 Stock size is measured in terms of autumn-winter vulnerable biomass for the Bmsy, Bref and Bmin indicators. Vulnerable biomass is the biomass that is available to be caught legally: above the minimum legal size and not egg bearing if female. 3 The Operational Guidelines for the Harvest Strategy Standard describe the Bref concept as follows: Conceptual proxies for BMSY, FMSY and MSY are qualitative surrogates that can be used in the absence of adequate information to directly estimate these reference points themselves. The conceptual interpretation embraces the spirit and intent of section 13 of the Act. It can be used in cases where there is insufficient information to estimate BMSY, FMSY or MSY explicitly, or where such estimates may be unreliable because, for example, there is little or nothing known about the stock recruitment relationship. Conceptual BMSY: In cases where the relationship between CPUE and abundance can be assumed to be more or less proportional, or where some other form of relationship has been derived from data, it may be reasonable to select an appropriate historical period when both CPUE and catches were relatively high and to use this CPUE level as a target. The best example in current use in New Zealand is that for rock lobster. [emphasis added]. NRLMG Review of Rock Lobster Sustainability Measures for 1 April

14 Table 4.2: Summary of key stock indicators that are available for each stock discussed in this paper. Indicator CRA 4 CRA 5 CRA 8 CRA 9 Bmsy Bref - Bmin SSB - Btot - - Ntot THE MPI HARVEST STRATEGY STANDARD In October 2008, MPI released the Harvest Strategy Standard (HSS) for New Zealand fisheries. The Harvest Strategy Standard specifies performance standards for Quota Management System species and also provides guidance for TAC setting under the Act. The HSS specifies that management procedures should be designed to ensure that the probability of: o Achieving the MSY-compatible target or better is at least 50%; o Breaching the soft limit does not exceed 10%; o Breaching the hard limit does not exceed 2%. For rock lobster: o MSY-compatible target reference points include those that relate to stock biomass (Bmsy) and conceptual proxies (Bref); o The soft limit is defined as 20% of the unfished SSB level or 50% Bref; o The hard limit is defined as 10% of the unfished SSB level or 25% Bref. Extensive simulation-testing suggests that all of the management procedures discussed in this document are consistent with the Harvest Strategy Standard. 5 Consultation Decisions to vary TACs are made under section 13(4) of the Act; therefore, the consultation requirements of section 12(2) apply. Decisions to vary TACCs are made under section 20(2), to which the consultation requirements of section 21(2) apply. These provisions require consultation with such persons or organisations representative of those classes of persons having an interest in the stock or the effects of fishing on the aquatic environment in the area concerned, including Maori, environmental, commercial and recreational interests. The NRLMG consulted on proposals to review sustainability measures for five rock lobster stocks from 14 January to 11 February A standard consultation process of posting the consultation document on the MPI website and alerting stakeholders to this through a letter sent to numerous tangata whenua, recreational and commercial contacts. 10 Review of Rock Lobster Sustainability Measures for 1 April 2016 NRLMG

15 5.1 SUBMISSIONS RECEIVED 16 submissions on the consultation document were received from the following organisations, groups and individuals: Allan MacKay Canterbury Marlborough Rock Lobster Industry Association Inc. (CRAMAC 5) CRA 4 Rock Lobster Association (CRAMAC 4) CRA 8 Management Committee Inc. (CRAMAC 8) CRA 9 Industry Association (CRAMAC 9) Iwi Collective Partnership Maungaharuru-Tangitu Trust Ngai Tahu Seafood Ngati Whatua Runanga Fishing Co. Ltd. NZ Rock Lobster Industry Council (NZ RLIC) NZ Sport Fishing Council (NZSFC) Pam MacKay Rob Pooley Ross Divett Te Atiawa (Taranaki) Holdings Limited Te Ohu Kaimoana Full copies of the submissions are available in Appendix 9. Each submission is discussed further below as relevant to each stock and in the other matters section in Appendix 1. 6 Legal considerations Your statutory considerations for TAC and TACC setting are discussed below and for each individual stock as relevant in the following sections. 6.1 PURPOSE OF THE ACT (SECTION 8) The purpose of the Act is to provide for the utilisation of fisheries resources while ensuring sustainability. The options presented in this paper for each rock lobster stock provide for the utilisation of these stocks while ensuring sustainability. 6.2 ENVIRONMENTAL PRINCIPLES (SECTION 9) Section 9 of the Act requires that you take the following environmental principles into account when exercising or performing functions, duties, or powers in relation to the utilisation of fisheries resources or ensuring sustainability: a) Associated or dependent species should be maintained above a level that ensures their long-term viability; b) Biological diversity of the aquatic environment should be maintained; c) Habitats of particular significance for fisheries management should be protected. The NRLMG considers that all options presented in this paper satisfy your obligations under section 9 of the Act. Rock lobster is taken by potting and hand-gathering fishing methods which have relatively low level of bycatch. The main method that commercial fishers use to target rock lobster is potting, which is considered to have very little direct effect on the aquatic environment. NRLMG Review of Rock Lobster Sustainability Measures for 1 April

16 6.3 INFORMATION PRINCIPLES (SECTION 10) Section 10 of the Act requires that you take the following information principles into account: a) Decisions should be based on the best available information; b) Decision makers should take into account any uncertainty in the available information; c) Decision makers should be cautious when information is uncertain, unreliable, or inadequate; d) The absence of, or any uncertainty in, any information should not be used as a reason for postponing or failing to take any measure to achieve the purpose of the Act. The NRLMG considers that the best available information has been used as the basis for the recommendations in this paper. All science information on which the management proposals are based, has been peer-reviewed by one of MPI s Fisheries Assessment Working Groups and meets the MPI Research and Science Information Standard for New Zealand Fisheries. 6.4 SUSTAINABILITY MEASURES (SECTION 11) Under section 11 of the Act, before setting or varying any sustainability measure for any stock, you must: a) Section 11(1)(a): take into account any effects of fishing on any stock and the aquatic environment. Rock lobster fishing methods (potting and hand gathering) are thought to have very little direct effect on non-target species and the aquatic environment. b) Section 11(1)(b): take into account any existing controls under the Act that apply to the stock or area concerned. A range of management controls apply to the stocks discussed in this paper including minimum legal sizes, daily bag limits for recreational fishers, method restrictions, and protection of egg-bearing females. No changes are proposed to these existing controls. c) Section 11(1)(c): take into account the natural variability of the stock. Recruitment to rock lobster stocks is highly variable. This variability was taken into account during development of the management procedures discussed in this paper. Sections 11(2)(a) and (b) require you to have regards to any provisions of any regional policy statement, regional plan, or proposed regional plan under the Resource Management Act 1991 and any management strategy or management plan under the Conservation Act 1987 that apply to the coastal marine area and that you consider relevant. The NRLMG is not aware of any such policy statements, plans or strategies that should be taken into account for the stocks. e) Section 11(2)(c): have regard to sections 7 and 8 of the Hauraki Gulf Marine Park Act 2000 that apply to the coastal marine area and you consider relevant. The CRA 4, CRA 5, CRA 8 and CRA 9 rock lobster fisheries do not intersect with the Hauraki Gulf Marine Park; therefore there are no relevant considerations under that Act. f) Section 11(2)(d): have regard to any planning document lodged by a customary marine title group under section 91 of the Marine and Coastal Area (Takutai Moana) Act No planning documents applicable to the fisheries have been lodged. g) Section 11(2A)(b): take into account any relevant fisheries plan approved under section 11A. No fisheries plans applicable to rock lobster have been approved. h) Sections 11(2A)(a) and (c): take into account any conservation or fisheries services, or any decision not to require such services. The NRLMG does not consider that existing or proposed services materially affect the proposals for these stocks. No decision has been made not to require a service in this fishery at this time. 12 Review of Rock Lobster Sustainability Measures for 1 April 2016 NRLMG

17 6.5 TAC SETTING (SECTION 13) A central consideration when choosing whether to use a management procedure to guide TAC setting in a fishery is whether the procedure enables you to set a TAC that complies with section 13 of the Act. Under section 13(2) of the Act you must set a TAC that maintains a stock at or above, restores a stock to or above, or moves the stock towards or above a level that can produce the maximum sustainable yield. However, before a TAC can be set under section 13(2) you must be provided with an estimate of both current biomass and the biomass that can produce the maximum sustainable yield (commonly called Bmsy). Where current biomass or Bmsy estimates are not available, or not reliable, then you are required to apply section 13 (2A) of the Act instead. Section 13 (2A) requires you to set a TAC using the best available information, and that is not inconsistent with the objective of maintaining the stock at or above, or moving the stock towards or above, Bmsy. In considering the way and rate in which a stock is moved towards, or above, a level that can produce the maximum sustainable yield (i.e. Bmsy) under section 13(2)(b) or (c) or (2A), you must have regard to such social, cultural and economic factors that are considered relevant. The management procedures discussed in this paper are designed to move stock biomass to, or maintain the biomass of each stock at, a size at or above Bmsy or the agreed proxy (i.e. Bref) as required under section 13 of the Act. When setting a TAC under section 13, you must also have regard to: a) Interdependence of stocks: is where there is a direct trophic (i.e. a stock is likely to be directly affected by the abundance of another stock) or symbiotic relationship between stocks. Rock lobsters are predators of molluscs and other invertebrates and predation upon rock lobsters is known from octopus, blue cod, groper, southern dogfish, rig and seals. Although there is uncertainty, the options proposed are unlikely to have any significant effect on the interdependence of stocks. a) Biological characteristics and environmental conditions: a variety of environmental factors are thought to influence the productivity of rock lobster populations including water temperature, ocean currents, latitude, shelter availability and food availability. Studies have also shown that lobsters grow at different rates around New Zealand and female lobsters become mature at different sizes. Variability in growth, maturity, available biomass, and recruitment were taken into account during the development of management procedures for the rock lobster stocks discussed in this paper. 6.6 TACC SETTING (SECTIONS 20 AND 21) When setting a TACC for a stock under section 20 of the Act, section 21 requires you to have regard to the TAC for that stock and allow for Maori customary non-commercial fishing interests, recreational interests, and all other sources of fishing-related mortality to that stock. The Act does not provide an explicit statutory mechanism to apportion available catch between sector groups either in terms of a quantitative measure or prioritisation of allocation. Accordingly, you have the discretion to make allowances for various sectors based on best NRLMG Review of Rock Lobster Sustainability Measures for 1 April

18 available information. Allowance options are discussed individually for each rock lobster stock later in this paper. When allowing for Maori customary non-commercial fishing interests you must take into account any relevant mätaitai reserves within the relevant quota management areas and any area closure or fishing method restriction or prohibition within those areas made under section 186A of the Act. There are several mätaitai reserves and temporary closures that fall within the areas of the rock lobster stocks discussed in this paper. The NRLMG considers that the proposed customary allowances for each stock will adequately provide for the harvest of rock lobster that is likely to be taken from a management area, after taking into account the mätaitai reserves and temporary closures in place. When allowing for recreational interests, you must take into account any regulations made under section 311 of the Act that prohibit or restrict fishing in any area. There are currently no section 311 regulations applying in the areas of the rock lobster stocks discussed in this paper. 7 Review of the CRA 4 rock lobster fishery 7.1 FINAL CRA 4 PROPOSALS Table 7.1 below shows the final proposals for CRA 4. The current CRA 4 management procedure and advice from CRAMAC 4 has been used to guide the final TAC setting options. The proposals to decrease the TAC and TACC are expected to ensure the CRA 4 stock is maintained above agreed reference levels. Table 7.1: Final proposals for CRA 4 Option TAC Customary Recreational CRA4_01: Use the current CRA 4 management procedure and decrease the TAC by decreasing the TACC by 21 tonnes (4.5 %) Other mortality TACC 641 t 35 t 85 t 75 t 446 t CRA4_02: Decrease the CRA 4 TAC by decreasing the TACC by 47 tonnes (10%) CRA4_03: Decrease the CRA 4 TAC by decreasing the TACC by 70 tonnes (10%) (NRLMG preferred) CRA4_04: Retain the current CRA 4 TAC, allowances and TACC 615 t 35 t 85 t 75 t 420 t 592 t 35 t 85 t 75 t 397 t 662 t 35 t 85 t 75 t 467 t 7.2 SUMMARY OF CRA 4 SUBMISSIONS Support for Option CRA4_01 and 04 No submissions were received on Option CRA4_01 (use the current CRA 4 management procedure and decrease the TAC/TACC by 21 tonnes), or Option CRA4_04 (retain the current settings) Support for Option CRA4_02 Ngati Whatua and NZSFC support Option CRA4_02 (decrease the TAC/TACC by 47 tonnes). The NZSFC supports the conservative approach taken by CRAMAC Review of Rock Lobster Sustainability Measures for 1 April 2016 NRLMG

19 7.2.3 Support for Option CRA4_03 Option CRA4_03 was not consulted on (decrease the TAC/TACC by 70 tonnes). It has been added to the final proposals based on an analysis of submitter feedback. CRAMAC 4, NZ RLIC and Te Ohu support this option and the Iwi Collective Partnership expressed support for this option dependant on the CRAMAC 4 ballot that closed on 11 February This new option stemmed from a review of CRA 4 landings that the CRAMAC 4 Executive Committee undertook in January 2016 after the consultation paper was released. The review found a 49 tonne shortfall in landings compared with landings from the same period for the previous season. CRAMAC 4 and NZ RLIC considers that several factors could be relevant to the observed stock decline, including significant habitat damage, loss of fishing grounds and prolonged below-average puerulus settlement levels. Industry consider that this TACC reduction should be meaningful and have the potential to leave some fish in the water for the next season. CRAMAC 4 is mindful of how rapidly the stock declined in the mid-2000s and considers that corrective action is promptly needed to halt and possibly reverse the observed decline in abundance. A ballot of CRA 4 quota share owners confirmed that 88% of quota shares owned supported the 70 tonne TACC reduction and only 2.2% opposed it Other comments Maungaharuru-Tangitu suggests that the customary allowance should be retained while the TACC and recreational allowance is reduced because they consider this impacts on their customary allowance. They also suggest that a Cultural Impact Assessment is conducted for their traditional area within Hawke Bay and that an implementation plan of the findings is agreed on. The NRLMG notes this assessment falls within the regional council responsibilities. 7.3 CRA 4 STOCK STATUS The 2011 CRA 4 stock assessment results suggested that 2011 stock biomass was 2.3 times Bmsy and 1.7 times Bref 4. Spawning stock biomass in 2011 was above 20% of its unfished level with greater than 99% probability (based on the 2011 CRA 4 stock assessment). It is currently unknown whether current CRA 4 stock biomass is above or below agreed reference levels. Standardised CPUE is considered to be a reliable indicator of relative stock size in CRA 4 and is the abundance indicator used in the CRA 4 management procedure. The history of offset year (i.e. October through September) CRA 4 commercial CPUE is shown in Figure 7.1. CPUE increased from 2008 to 2012, but has since declined. 4 Bref for CRA 4 is the pre-season autumn-winter vulnerable biomass associated with the period NRLMG Review of Rock Lobster Sustainability Measures for 1 April

20 Figure 7.1: The history of CPUE in CRA 4, (offset years) (based on the procedure for preparing data for CPUE standardisation called B4_L 5 ) 7.4 ANALYSIS OF CRA 4 FINAL PROPOSALS TAC setting The current CRA 4 TAC is 662 tonnes. Because there are no reliable estimates of current biomass and Bmsy, you must set a TAC for CRA 4 under section 13(2A). Section 13(2A) requires you to set a TAC using the best available information and that is not inconsistent with the objective of maintaining the stock at or above, or moving the stock towards or above, Bmsy. Use the CRA 4 management procedure and decrease the CRA 4 TAC by 21 tonnes (Option CRA4_01) Under Option CRA4_01 the CRA 4 TAC would be decreased to 641 tonnes. The proposed TAC decrease is specified by the CRA 4 management procedure that a previous Minister agreed to use in 2012 to guide TAC setting in the fishery until the fishing year. Important elements of the current CRA 4 management procedure are set out below and in Appendix 1. Ongoing application of the CRA 4 management procedure was expected, based on simulation testing, to exceed the requirements of the MPI Harvest Strategy Standard and maintain the stock above Bref with greater than 99% probability and above Bmin with greater than 99% probability. The current utilisation benefits of the fishery will decrease under this option. How this reduction is shared amongst the fishery sectors will depend on allocation decisions. Historically, only the TACC has been increased or decreased to give effect to the variations in the TAC. 5 The B4_L procedure for preparing data for CPUE standardisation does not capture fish returned to water like the F2_LFX procedure used in other stocks, which better represents the estimation/landing process. 16 Review of Rock Lobster Sustainability Measures for 1 April 2016 NRLMG

21 The 21 tonne TAC reduction recommended by the CRA 4 management procedure is not preferred by the NRLMG or submitters. The NRLMG does not consider that it goes far enough to halt and possibly reverse the observed decline in abundance that commercial fishers have experienced in the current season. The NRLMG is supportive of the use of management procedures, but considers there are compelling reasons, discussed below, not to follow the CRA 4 management procedure this year. The NRLMG notes that this is the last year of operation of the current CRA 4 management procedure. A new stock assessment and management procedure evaluations will be performed later in 2016 to ensure TAC setting for this stock remains compliant with your statutory considerations. Decrease the CRA 4 TAC by 47 tonnes (Option CRA4_02) Under Option CRA4_02 the CRA 4 TAC would be decreased to 615 tonnes. This proposed TAC decrease (and consequent 10% TACC decrease) was suggested by CRAMAC 4 in December 2015 as an option to be considered and confirmed by CRA 4 quota share owners during the consultation period. A larger TAC decrease than specified by the CRA 4 management procedure will provide greater certainty that the stock will be maintained above an agreed reference level, Bref. This option will also decrease the current utilisation benefit of the fishery, which has historically only seen the TACC varied. Two submitters (Ngati Whatua and NZSFC) expressed support for this option. However, during the consultation period CRAMAC 4 undertook a review of landings during the current season and considered that the 47 tonne TAC reduction may not go far enough to arrest any further stock decline. Industry then initiated a more precautionary approach to TAC setting. This is why the NRLMG has recommended a new option for your consideration (Option CRA4_03). Decrease the CRA 4 TAC by 70 tonnes (Option CRA4_03) Under Option CRA4_03 the CRA 4 TAC would be decreased to 592 tonnes. This proposed TAC decrease (and consequent 15% TACC decrease) was recommended by CRAMAC 4 and NZ RLIC during consultation as an option for you to consider. Of the TAC decrease options, this option provides greatest certainty that the stock will be maintained above an agreed reference level, Bref. The NRLMG and the submitters of this option consider that the 70 tonne TAC reduction will be meaningful and has the potential to leave more fish in the water for the next season. This option will decrease the current utilisation benefit of the fishery, which has historically only seen the TACC varied. Although this option was not consulted on, the NRLMG considers the risk of choosing this option to be low. There is a high level of support for the 70 tonne reduction by industry (more than 88% of quota shares owned supported it) and it is unlikely that non-commercial fishers or submitters would oppose the greater reduction because it should leave more fish in the water and provide a greater opportunity for the stock to increase. NRLMG Review of Rock Lobster Sustainability Measures for 1 April

22 Retain the current CRA 4 TAC (Option CRA4_04) Under Option CRA4_03 the CRA 4 TAC would stay at its current level for the fishing year. This option is not supported by the NRLMG or submitters. Maintaining the current TAC could result in a further decline in CRA 4 stock abundance and this could affect the utilisation benefit for all fishing sectors Setting of non-commercial allowances Customary Maori allowance No change is proposed to the 35 tonne customary Maori allowance for CRA 4. Information on CRA 4 customary catches is available under the Fisheries (Kaimoana) Regulations 1998 and regulation 50 of the Fisheries (Amateur Fishing) Regulations In the last five April fishing years, an average of about 9,460 rock lobsters were reported landed each year in CRA 4 under the regulations. Noting the incompleteness and uncertainty in the CRA 4 customary harvest information, it is assumed that current harvest is within the 35 tonne allowance allocated for customary Maori interests at this time. An estimate of 20 tonnes was used in the last 2011 CRA 4 stock assessment model to represent customary catches (blue line in Figure 7.2 below). Recreational allowance No change is proposed to the 85 tonne recreational allowance for CRA 4. In the 2011 CRA 4 stock assessment, recreational catch estimates from 1994 and 1996 recreational harvest surveys were used to construct a recreational catch trajectory (Figure 7.2). The model assumed that recreational catch was proportional to the spring-summer commercial CPUE for CRA 4. The resulting recreational catch trajectory showed a strong increasing trend up to the end of 1990s, followed by a steep drop to , then a recovery by The largest annual catch since was estimated at 69 tonnes in and catch averaged 43 tonnes per year since The model assumptions of recreational catch suggest the 85 tonne recreational allowance adequately allows for likely levels of recreational harvest from the CRA 4 fishery at this time. 6 Previously regulation 27A of the Fisheries (Amateur Fishing) Regulations Review of Rock Lobster Sustainability Measures for 1 April 2016 NRLMG

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